DBS SECURITISES DBS TAMPINES CENTRE AND LAUNCHES S$180M TAMPINES BONDS DUE 2006

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Plan part of DBS' intention to focus on its core banking and financial services.

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Bonds feature 40% security buffer, assured yield, and share of the potential gain in sale of building.

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DBS Bank announced plans to divest DBS Tampines Centre (`the Building') by way of asset securitisation, and said it will offer a total of S$180 million mortgaged backed bonds secured by the Building.

DBS Tampines Centre is a commercial and retail building located next to the Tampines MRT station. The divestment is in line with the Bank's intention to divest its non-core assets and focus on its core banking and financial services. The Building is a 99-year leasehold building (from 1990) with a lettable floor area of 16,487 sq. m.

DBS Bank will sell the Building to a special purpose vehicle, Tampines Properties Pte Ltd ( `Tampines Properties') at S$180 million, the value of the Builidng. Tampines Assets Ltd (`Tampines') the holding company of Tampines Property, also a special purpose vehicle, will issue S$180 million 7-year fixed rate bonds together with 18,000 Preference Shares and on lend the proceeds to Tampines Properties for the purchase.

The Bonds will be issued in 2 classes; S$108m Senior Bonds and S$72m Junior Bonds. S$20 million of the Senior Bonds will be offered to retail investors. The S$20 million Senior Bonds are available for offer to retail investors via DBS Bank ATMs (including POSBank ATMs) on a first-come-first-served basis.

The bonds will be on offer from Wednesday, 1 December 1999 (9.30 am) to Monday, 6 December 1999 (12.00 noon) or immediately upon full subscription, whichever is earlier. The Senior Bonds are offered at par at a coupon of 5.625% p.a. payable semi-annually. Investors can apply for a minimum of 10,000 units and a maximum of 1,000,000 units. Each lot of 10,000 units will comprise S$10,000 in principal amount of the Senior Bonds with 1 non-detachable Preference Share.

This issue has features which make it superior to a straight bond issue. First, the bonds are secured on the Building and credit enhancement comes in the form of two classes of bonds, Junior and Senior Bonds. The Senior Bonds are ranked ahead of the Junior Bonds, allowing investors in senior bonds a security buffer of 40%. This means that any fall in the current value of the Building will not affect the retail investors' principal amount unless the fall is more than 40% of the Building's current value of S$180 million.

Second, the Building will be leased back to DBS on a seven-year agreement, assuring investors of a yield of 5.625% p.a.

of the Building. The gain, if any, will be distributed to Bondholders via a special preferential dividend.

And last, bondholders have the option of an early redemption in the 6th and 7th year, providing a window of two years to cash out if market conditions decline. Bondholders, holding not less than 35% in aggregate principal amount of the Bonds could request Tampines to redeem the bonds.

The Bonds can be transacted at the Stock Exchange of Singapore or at DBS branches. Details of the Issue are found in the Prospectus, which are available at all DBS and POSBank Branches.

DBS Bank has played an active role in the development of asset securitisation products and will continue to do so. Following its success in pioneering the first asset securitisation in Singapore when it arranged the sale of the NOL Building, this will be the 5th asset securitisation arranged by DBS Bank. To date, DBS Bank has arranged securitised deals totalling about S$1 billion.